The International Labour Organization, the labor agency of the United Nations, reports that the global recession slowed wage growth dramatically last year and that the trend will likely worsen this year:
Global growth in real wages slowed dramatically in 2008 as a result of the economic crisis and is expected to drop even further this year despite signs of a possible economic recovery, the International Labour Organization said.
“The continued deterioration of real wages worldwide raises serious questions about the true extent of an economic recovery, especially if government rescue packages are phased out too early. Wage deflation deprives national economies of much needed demand and seriously affects confidence”, said Manuela Tomei, Director, ILO Conditions of Work and Employment Programme and lead author of the study.
The report will be discussed at the ILO Governing Body meetings that begin today, November 5.
Full ILO 2009 report (pdf): http://www.ilo.org/wcmsp5/groups/public/—dgreports/—dcomm/documents/publication/wcms_116500.pdf